Automatic Payments is a recurring billing solution that allows you to operate with stored cards (card on file) without requesting the CVV on each transaction.

It covers everything from classic subscription models to one-time payments and one-click experiences, as it supports both customer-initiated payments (for example, a "Pay with one click" or "Use saved card" button) and merchant-initiated transactions (periodic automatic debits, renewals, consumption-based charges).

This enables a wide range of business models: SaaS platforms, subscription services, memberships, delivery apps, marketplaces, digital wallets, top-ups, and any other option where payments have some kind of recurrence.

By eliminating the friction of re-entering the card CVV and relying on secure tokenization of payment methods, Automatic Payments helps:

• Increase conversion on renewals and repeates purchases.
• Reduce cart abandonment and checkout friction failures.
• Scale recurring revenue with a simple user experience and solid security and compliance controls for the business.

With CVV-free payments, it is possible to carry out recurring charges (school fees, utility bills, etc.) with Mercado Pago, having the freedom to adapt the solution in the most optimal way for your business. Pre-approval is only available through custom checkout, i.e., using Checkout API or Checkout Bricks.

In addition, the seller must comply with the following Mercado Pago integration policies:

• The seller must communicate clearly and unequivocally to their user or customer base that the payment platform on their website is provided by Mercado Pago, also indicating the deadlines, dates, and values of recurring payments.

• In the case of existing users or customers of the seller being migrated to Mercado Pago's recurring payment platform, the seller must communicate in writing indicating that Mercado Pago will process the payments, informing that the charge will appear as Mercado Pago or Mercado Libre on the invoice.